Reported 1 day ago
Transfer pricing involves setting prices for transactions between subsidiaries of multinational corporations, which can affect their taxable income and financial reporting. While legal, this practice is closely monitored by tax authorities to prevent profit shifting and tax avoidance. Transfer pricing strategies can significantly impact a company's earnings and tax liabilities, influencing investor decisions. Investors should carefully analyze transfer pricing disclosures to assess potential risks and the company's adherence to international tax regulations.
Source: YAHOO